FINANCE TIP OF THE DAY
Can you afford your loan?!
Know the quantity of loan you can afford. The banks may sanction loan based on your income but you should look at your monthly expenditure and see if you can afford the maximum that banks offer. As a thumb rule, remember not to let your credit exceed 40% of your income!
Builder floors vs. High rise apartments
In today’s context innovative options both in the residential units and loan offerings seem to be the need of the hour. The boom in real estate that has been fueled by the ever rising incomes of individuals in India combined with easy access to home loans has brought about such new and innovative options in the residential units. Luxury and lifestyle demand has seen the emergence of elegant builder floors as the preferred choice among many upwardly mobile Indians. This concept of building a three or four level high building over small or medium sized residential plot and then selling each of the floors to independent buyers is gaining rapid popularity in the metros as well as tier II cities across the country. The builder floors can be developed either by established builder, individual land owners or as joint venture of both the parties.
Basic Differences between Builder Floors and High Rise Apartments
There are several differences in the basic considerations of builder floors as compared to apartments in high rise buildings.
- Builder floors are low rise buildings with generally 4 floors or less whereas the high rise residential projects may have a large number of floors depending on the project clearances.
- In the builder floors only a single dwelling unit is provided per floor which implies that a single family has the entire floor to itself providing greater privacy. The high rise projects on the other hand have a number of 2, 3 or 4 BHK apartments on a single floor which implies more people sharing the same floor.
- The cost of builder floors are inherently higher as they cater to high end customers who prefer to enjoy better amenities and privacy at a higher cost. The high rise residential complexes cater to the average middle class who require budget housing solution with a ready to move in option. Economically speaking the apartments in high rise buildings are much more efficient in terms of cost as well as utilization of available space.
- High rise complexes with more number of units will generally have more common amenities such as swimming pools, community halls, club houses and children’s park. The social life is also more inclusive in case of the high rise apartments as more families reside in the same building.
Key Benefits of Builder Floors
The USP of builder floors is that it allows one to own an independent dwelling unit without having to pay hefty amounts required for independent villas or bungalows. The price difference between an independent villa and the builder floor makes it a lucrative option for all those who want better lifestyle at limited costs. Along with the privacy and luxury of an entire floor to you also comes the freedom from paying maintenance fees and other charges commonly applicable in high rise apartment. The builder floors accord one the freedom to choose the locality of the house in more developed areas of the city. Tying up with independent land or house owners for developing builder floor can work out to be a great deal for buyers. There is a better opportunity for friends or like minded people getting together and buying all the floors of the building so as to have a separate community that will not be disturbed by outsiders as is the case in high rise buildings that have a large number of apartments. Each floor has its own separate water and electricity connection which helps avoid disputes or misunderstandings which are common in larger communities where floors are shared by many families. Additionally the returns that can be expected from the sale of builder floors are much higher in terms of sheer percentages as the entire floor is being disposed at a time. A higher premium on the property is naturally expected as the new owner gets independence along with luxury.
Common Problems faced by Builder Floor Owners
Along with the luxury of owning a builder floor there are a few associated problems which have to be catered for by the owner all by himself. The first among these is the maintenance activities which are taken care by the society in larger residential complexes have now to be undertaken by the owner himself. Additionally community facilities which are commonly available in larger societies will be absent in most of the builder floors as only a few families will be sharing the entire complex. The quality of construction may not be as good as in the other case. Hence the due diligence and supervision has to be carried out by the owner if required with the help of a hired professional.
Essential Checks while Buying Builder Floors
While buying any kind of real estate requires the customer to do a few fundamental checks, the situation becomes even more critical and essential in case of builder floors as only a few customers are involved. Mentioned below are some of the important checks that must be carried out prior to buying a builder floor.
- The past record as well reputation of the developer or land owner must be verified carefully in terms of quality as well as commitment to schedules.
- The title of the property has to be individually verified at the local courts or land record offices.
- Check out the market rates applicable in that circle or the base rate fixed by the local authority.
- Consult and discuss with a number of builders, brokers and individual land owners before making up your mind.
The builder floors promise to provide lifestyle and luxury at an affordable price. However there are a few inherent risks associated, which can be catered for through a bit of research and careful planning.